SERVICES QUALITY, CUSTOMER SATISFACTION AND CUSTOMER RETENTION
Abc (your name here)
ABC (supervisor’s name here)
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The banking industry has become increasingly integrated in recent years. In this modern customer-based epoch, customer value on service quality becomes a strategic tactic in attracting and retaining customers. In this sense, CIMB Bank as the Malaysia’s second largest financial services provider and fifth largest in Southeast Asia by total assets should pay high attention and effort in service delivery standards because in banking industry, service quality has become an essential and important part of success due to increased customer expectations and customization of services in many markets.
Although CIMB Bank has been awarded for being innovative, some complaints related to its service quality have emerged in various branches. To stay competitive in this environment, banking organizations must improve and develop new financial systems that can contribute towards overall satisfaction of customers. Banking organizations also need to improve its service quality in management of staff in order to increase customer satisfaction. In this competitive environment arising from financial globalization and liberalization service quality assumes great significance. If the services provided match or exceed the customers’ perceived value and expectations of service quality, then the customers who expect superior and innovative service from the banking organization will be satisfied. In this sense, CIMB Bank is no exception and must improve its service quality.
The study used five SERVQUAL dimensions which are tangible, reliability, responsiveness, assurance and empathy to measure the expectation of service and perceived service in CIMB Bank Batu Pahat in order to better measure the service quality level by comparing the difference between these two services. Four objectives were developed to address the purposes of the study, which were (i) to determine the customer’s expectation service level towards CIMB Bank Batu Pahat. (ii) to determine the customer’s perceived service level of CIMB Bank Batu Pahat. (iii) to determine the service quality performance and identify whether the customer is satisfied with the service quality of CIMB Bank Batu Pahat. (iv) to determine the relationship between customer satisfaction and customer retention in CIMB Bank Batu Pahat. Review on other literatures and previous researches on related matter were carried out to address these objectives.
There are a number of different definitions as to what is meant by service quality. According to Gronroos (1982), service quality is customer’s perception of difference between the expected service and the perceived service. Gronroos (1982) also defined the concept of perceived service quality as the outcome an evaluation process, where the customer compares his or her expectations with the service he or her recognize or has received. Customers will compare the perceived service with the expected service after receiving the service from the provider. If the perceived service falls below the expected service, customers lose interest in the provider. On the other hand, if the perceived service meets or exceeds customers’ expectations, they are about to use the provider again (Lewis and Booms, 1983; Lehtinen and Lehtinen, 1982; Gronroos, 1984; Parasuraman et al. 1985, 1988, 1994).
Several models that measure the service quality level were reviewed. Prominent among them are the SERVQUAL model, the three-component model and the integration model of service quality. SERVQUAL model was used as the main instrument because it serves as a technique which can be used for performing gap analysis on an organization’s service performance against customer service needs. SERVQUAL survey...
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